Jeanna Smialek and Shobhana Chandra at Bloomberg report that:
The cost of living in the U.S. rose more than forecast in May, reflecting broad-based gains that signal inflation will move closer to the Federal Reserve’s goal. The consumer price index increased 0.4 percent, the biggest advance since February 2013, after climbing 0.3 percent the prior month, a Labor Department report showed today in Washington. The median forecast of 81 economists surveyed by Bloomberg called for a 0.2 percent increase. Excluding volatile food and energy prices, the gain was the largest in almost three years.
Speaking of those food and energy prices …
As Zero Hedge notes in a tweet:
The index for food at home increased 0.7 percent, its largest increase since July 2011.
Energy prices, of course, could rise dramatically in the short run if the Iraq situation worsens. And will, inevitably, increase long term as the campaign against coal intensifies. So you’ll be okay as long as you don’t eat or drive or use the air conditioner.
White House officials concede the American public is still anxious about the economy. Wages remain stagnant, workers have dropped out of the labor force, and 3.4 million Americans have been without work for 27 weeks or more, thus classifying them as long-term unemployed.
Very sporting of them to make that concession.